Atlantic Petroleum (ATLA DKK) Q2 2024 earnings summary

Executive summary

• Achieved operating profit of DKK 4.3MM and net profit of DKK 2.5MM for H1 2024, reversing prior year losses.

• No revenue from direct production; income derived from deferred consideration on Orlando field.

• Net assets/shareholders' equity at DKK -112.5MM, reflecting significant negative equity.

• Board is prioritizing debt restructuring to ensure going concern status.

Financial highlights

• Revenue for H1 2024 was DKK 0; all income from Orlando deferred consideration (DKK 5.7MM).

• EBITDAX and operating profit (EBIT) were DKK 4.3MM, compared to DKK -5.5MM in H1 2023.

• Net profit after tax was DKK 2.5MM, up from a loss of DKK -7.9MM in H1 2023.

• Cash flow from operations was negative DKK 220K; cash and cash equivalents at period end were DKK 106K.

• Bank debt stood at DKK 59.4MM at 30 June 2024.

Outlook and guidance

• Orlando field expected to continue stable production in 2024, but revenue share unlikely to cover total debt.

• Board is negotiating with creditors to reduce overall debt, with a 2024 deadline for a solution.

• Without debt restructuring, company may not continue as a going concern and asset values may be impaired.

• Actively seeking growth via participation in production or near-production assets in low-risk Northern Hemisphere countries.